What is the difference in royalty fees between a Dog Haus Fast Casual/Biergarten and a Dog Haus Remote Kitchen?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name Of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee3 (Dog Haus Fast Casual Restaurant and Dog Haus Biergarten Restaurant) | 6% of "Gross Sales" | Tuesday of each week on the Gross Sales of your Franchised Restaurant during the immediately preceding week. | "Gross Sales" includes all revenue from retail and wholesale sales of goods, merchandise, services or products from your operations. Gross Sales do not include bona fide refunds paid to customers, sales or use taxes actually paid to governmental authorities or the retail price of any coupons, gift certificates and vouchers when they are redeemed. |
| Royalty Fee3 (Dog Haus Remote Kitchen) (Remote Kitchen Addendum) | 4% of "Gross Sales" | Tuesday of each week on the Gross Sales of your Franchised Restaurant during the immediately preceding week. | "Gross Sales" includes all revenue from retail and wholesale sales of goods, merchandise, services or products from your operations. Gross Sales do not include bona fide refunds paid to customers, sales or use taxes actually paid to governmental authorities or the retail price of any coupons, gift certificates and vouchers when they are redeemed. |
Source: Item 6 — OTHER FEES 1 (FDD pages 15–22)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the royalty fee for a Dog Haus Fast Casual Restaurant and Dog Haus Biergarten Restaurant is 6% of Gross Sales. The royalty fee for a Dog Haus Remote Kitchen is 4% of Gross Sales. Both royalty fees are due on the Tuesday of each week based on the Gross Sales of the Franchised Restaurant during the immediately preceding week. Gross Sales includes all revenue from retail and wholesale sales of goods, merchandise, services, or products from your operations. Gross Sales do not include bona fide refunds paid to customers, sales or use taxes actually paid to governmental authorities, or the retail price of any coupons, gift certificates, and vouchers when they are redeemed.
Thus, a franchisee operating a Dog Haus Fast Casual or Biergarten location will pay a higher percentage of their gross sales in royalty fees compared to a franchisee operating a Remote Kitchen. This difference of 2% could significantly impact the profitability of each type of franchise, especially for locations with high sales volumes.
Prospective franchisees should carefully consider the different royalty fee structures when deciding which type of Dog Haus franchise to pursue, factoring in their projected sales and overall business strategy. Understanding the nuances of Gross Sales definitions is also crucial for accurate financial planning and royalty payment calculations.